Leadership - Team Leadership at Wipro

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Team Leadership at Wipro

Team Leadership at WiproWipro's Co-CEO Model Are Two CEOs Better Than One?

03-10-2015Team Leadership at Wipro - By Saurabh Sao1

1Case Title:Leadership Re-organisation: Wipro's Co-CEO ModelAbstract:In April 2008, Wipro, India's third largest software services firm announced the appointment of Girish Parajpe and Suresh Vaswani as co-CEOs for its IT business. Over the years, divergent personalities like Ashok Soota and Vivek Paul brought in their style of management and moved the business ahead. Wipro expects the appointment of co-CEOs would enable the company to take advantage of blending complementary skills and experience, easing the strain of responsibility and workforce synergies to help the company move up the value chain in the global software industry. However industry experts are sceptical about the model, as such earlier global attempts have not been too successful. But in the Indian scenario, specifically IT, companies have managed well with a collective style of leadership. Will Wipro achieve what it set out to do by appointing joint CEOs or will it be pulled in different directions by the two leaders?Pedagogical Objectives:To different leadership styles and challenges faced by leaders.To leadership changes in Wipro and how it affected the business.The rationale behind the decision to appoint joint CEOs.The likely impact of the decision.03-10-2015Team Leadership at Wipro - By Saurabh Sao2About WiproIndias third-largest software services firm

Mumbai- and New York-listed company

Revenues grown to nearby $4 billion in 2008 from $1.35 billion in 2005

03-10-2015Team Leadership at Wipro - By Saurabh Sao3CEOS SINCE 1981Ashok Narasimhan:Founding CEO & president of Wipro's IT business Wipro InfoTech and Wipro Systems (software business)Ashok Soota:Joined Wipro Infotech in 1984 as president and then became CEO of Wipro Systems in 1991Vivek Paul:Joined Wipro in 1999 after Ashok Soota left the company to start Mindtree. Led the company for six years till 2005Azim Premji:Chairman and CEO from 2005 to 2008Girish Paranjpae & Suresh Vaswani:Took charge as joint CEOs in 2008 and ran the company for almost three yearsT K Kurien:Assumed the post of CEO in April 2011

03-10-2015Team Leadership at Wipro - By Saurabh Sao4Wipros organizational structureWipros organizational structure is complex and sometimes puzzles outsiders.

1 Chairman, 2 Executive Director & Joint CEO, IT Business, 1 Executive Director & CFO.8 independent non-executive directors

03-10-2015Team Leadership at Wipro - By Saurabh Sao5Wipros IT BusinessThe IT business has two organizations

Wipro Infotech (serves India, West Asia and Asia Pacific.)

Wipro Technologies (handles the global business)03-10-2015Team Leadership at Wipro - By Saurabh Sao6Wipros Business MatrixIn functional terms, the company has a matrix structure with 3 verticals and 2 horizontals.WIPRO Functions123123 X 2 Matrix03-10-2015Team Leadership at Wipro - By Saurabh Sao7The VerticalsThe three verticals are $1.06 billion Technology Business (which is in the product engineering and the telecom service provider space)

$1.4 billion Enterprise Business (targeted at manufacturing, healthcare, retail, etc.)

$799 million Financial Services Business.03-10-2015Team Leadership at Wipro - By Saurabh Sao8The HorizontalsThe two horizontals are:

$1.1 billion Global Practices Business (testing, package implementation and technology infrastructure services)

$290 million Business Process Outsourcing (BPO) operation03-10-2015Team Leadership at Wipro - By Saurabh Sao9Wipros Business MatrixThese verticals and horizontals are headed by executives who were expected, after Pauls departure, to function as CEOs. WIPRO Functions$1.06 billion technology business$1.4 billion enterprise business$799 million financial services business$1.1 billion global practices business$290 million BPO3 X 2 Matrix03-10-2015Team Leadership at Wipro - By Saurabh Sao10Wipro TimelineFormer CEO Vivek Paul left to join Texas Pacific Group(A private equity firm)

Wipro has had no CEO since Pauls departure

Chairman Azim Premji owns more than 80% of Wipro and took charge by combining the roles of both chairman and CEO.

03-10-2015Team Leadership at Wipro - By Saurabh Sao11Chairman and CEOPremji got inevitably overburdened.

It pushed too much of the operating load on me and was getting counter-productive, says Premji.03-10-2015Team Leadership at Wipro - By Saurabh Sao12ChangeThat situation changed when Wipro announced in mid-April 2008 the appointed of not just one CEO but two:

Girish Paranjpe

Suresh Vaswani.

03-10-2015Team Leadership at Wipro - By Saurabh Sao13Girish ParanjpeUniversity of MumbaiBachelor of Commerce (B.Com.),Economics,Accounting 1974 1978Daly CollegeXI,english maths 1964 1974

Paranjpe has been with Wipro since 1990

Most recently was president of the BFSI (banking, financial services and insurance) vertical of Wipros global IT business.

03-10-2015Team Leadership at Wipro - By Saurabh Sao14

Competency of Girish ParanjpeStart-ups, Pre-sales, Team Management, Business Analysis, Cloud Computing, FinanceOperations Management, CRM, Business IntelligenceSolution Architecture, Product Management, SaaSIntegration, Strategic Planning, Consulting

Core Competency : Cost and Profit Orientation.03-10-2015Team Leadership at Wipro - By Saurabh Sao15

Suresh VaswaniIndian Institute of Management, AhmedabadPGDBM, 1983 1985Indian Institute of Technology, KharagpurB.E., 1976 1981

Vaswani is a 23-year veteran at the company Before his promotion, the president of Wipro Infotech. In addition, he oversaw some areas of the global practices of Wipro Technologies.

03-10-2015Team Leadership at Wipro - By Saurabh Sao16

Competency of Suresh VaswaniVendor Management, Outsourcing, Pre-sales, Managed Services, Program Management, Business Development, Global Delivery, Information Technology, Solution Architecture, CRM, Security, Team Management, Infrastructure, Testing, Executive Management, Integration, Project Management, Software Project., BPO, Cisco Technologies, Technical SupportSystem Deployment, Business Analysis, Social Media, Solution Selling, SaaS, Enterprise Architecture, IT Outsourcing, Telecommunications, Data Center, Manufacturing, New Business Development

Core Competency : Action and Result Orientation.

03-10-2015Team Leadership at Wipro - By Saurabh Sao17

Confident with ChangePremji is confident that the new arrangement will work. He said, We believe that two people who have worked together for more than 10 years and been in the company for more than 15 years would be able to work very well as a team. The fact that 75% of our revenues come from global markets, the fact that we are growing at 30% a year in a service, highly people-intensive industry, we figured that a two-man team at the top would be stronger than one man at the top. I continue to be executive chairman, but they are the joint CEOs of our IT business. - In an interview with India Knowledge@Wharton,

03-10-2015Team Leadership at Wipro - By Saurabh Sao18The Hot SeatsThe two men occupying the hot seat

in this case, seats

are equally enthusiastic and eager.03-10-2015Team Leadership at Wipro - By Saurabh Sao19The Gung-hoVaswani:

Given the size of our business and the ambitions that we have for our business, two is certainly better than one. We do believe that the power of two will help us so far as we are concerned, given our environment.03-10-2015Team Leadership at Wipro - By Saurabh Sao20The Gung-hoParanjpe:

Given the enormity of the opportunity and the task at hand, we felt it was worthwhile to have two of us trying to drive this rather than leave it to one individual to try and do [everything]. And from a personal perspective, it can get very lonely at the top. So, having two people helps.

03-10-2015Team Leadership at Wipro - By Saurabh Sao21My viewThe business environment in India gives a stimulus to this model of collegial and collective leadership,

Wipros business in the country is associated with both face of India Indian premium Indian penalty

03-10-2015Team Leadership at Wipro - By Saurabh Sao22Indian Premiums & PenaltiesThe premium aspect for companies doing business in India is the combination of access to a highly skilled labour pool and attractive wage levels,

The penalties are the uncertainties in the business environment with respect to infrastructure, power availability, urban transportation and stability in policy regimes. 03-10-2015Team Leadership at Wipro - By Saurabh Sao23Need of two CEOCompanies like Wipro need two CEOs because of the complexity of doing business in IndiaOn the one hand, you have to manage offshore client relationships and business development by staying really closely tuned to what is happening in international markets.

On the other, you have to be embedded in India to manage the country-specific challenges.

Sometimes these two faces of complexity are quite dissociated from each other, it may be difficult for the same CEO to handle both ends.03-10-2015Team Leadership at Wipro - By Saurabh Sao24Collegial Leadership ModelSuch a collegial leadership model works in some Indian companies is because what they call

The Founder Effect.03-10-2015Team Leadership at Wipro - By Saurabh Sao25The Founder effectThe founders of companies such as Wipro, Infosys Technologies and HCL Technologies are entrepreneurs in some senses, are more principals than employees,they have very strong shared values and they have seen their companies grow over the years.

Conflicts between CEOs often occur because of vastly divergent visions